Topic overview

The multi-site is used for the mapping of business processes of a corporation within a database. All master data and transaction data are managed in the parent company and allow the control of multi-site processes between the companies of a corporation.

It does not matter whether the company components of the group are legally independent organizations or not. The different organizations may be in different countries and thus in different jurisdictions and different time zones.

For the Sales, Purchasing, and Logistics (including production) task areas, a separate mapping of the organizational structures is allowed in each case. This architecture allows for Comarch ERP Enterprise to be used in both small and medium-sized companies with one site (single-site) or multiple sites and subsidiaries (multi-site) as well as in global companies (corporation, holding) with a complex structure and legally independent organizations.

This article gives an overview of the multi-site organization and data structures. It provides examples for the use of multi-site approach in various organizational structures and information on the procedures required to set up a multi-site system. In a multi-site system, numerous applications are supplemented with fields and functions or additional applications are added to a framework.

Definition of terms

Purchasing organization – is one that is part of the Purchasing organizational structure and therefore represents a node of this organizational structure.

Company – with reference to organizations, within the organizational structure for Financials, one assigned organization is referred to as a company. A company is a corporate body with a separate balance sheet. You can set the Financials company for the data records transferred from the OLTP database in the Customizing application. In Financial Accounting, any number of companies can be kept in one database.

Content-based authorizations – are authorizations for internal and external partners. Read and write access to data and the use of functions are controlled with content-based authorizations. They are determined based on the organizations assigned.

Inter-company billing – the clearing or offsetting of business transactions between organizations of a corporation is known as inter-company billing. Clearing between the organizations is done based on differently assigned companies in Financials.

Inventory management organization – one that is part of the Inventory Management organizational structure and therefore represents a node of this organizational structure.

Multi-site – provides the shared use of master data within a corporate group and the handling of business processes across the individual organizations. For this purpose, separate organizational structures for the Purchasing, Inventory Management (including Production), Financials, and Sales task areas have to be built. These structures map the procedural and the structural organization of the corporate group.

Organization – a partner category used for the creation, for example, of companies, branch offices, departments, etc. An organization can be part of an organizational structure for the task areas Purchasing, Inventory Management, Financials, or Sales. As element of such an organization structure, the organization is also called one of the following, depending on the task area: Purchasing organization, Inventory Management organization, or Sales organization, or, in Financials, a Financials company.

Organizational structure – reflects the procedural organization in a corporation. The company structure is also mapped to some extent. Organizational structures are needed for the use of content-based authorizations and for mapping business processes of a corporation. These structures can be built up for the following task areas: Purchasing, Inventory management, Financials, Sales

Single site – describes an environment in which only the ordering party (active OLTP client) is mapped as a legally independent company. For the organizational structures, this company is both purchasing, inventory logistics, and sales organization, as well as the company for Financials. With activated Content-based authorizations, several organizations that are part of the company, such as branch offices, departments, etc., can be assigned to the organizational structures in a single-site environment.

Site – a designated inventory logistics organization. In the Inventory Logistics organizational structure, a site is the node to which warehouse sites can be assigned. There is only ever one site within a structure path. This means: no further site may exist above or below a site. The site sets the company responsible for the warehouses. Production and inventory management always refer to a site.

Sales organization – an organization that is part of the Sales organizational structure and therefore represents a node of this organizational structure.

Organizational structures

Separate mapping of the respective organizational structure of a corporation is supported for each of the following task areas:

• Purchasing
• Inventory management (including Production)
• Sales
• Financials

For the Purchasing, Inventory management, and Sales task areas, a hierarchy of any structure and depth can be mapped in each case. In Financials, companies are not hierarchically structured, but they are recorded in parallel.

In the Organizations application, the organizational structures are defined for each task area. For this purpose, partners of the Organization category can be used. If a partner is assigned to an area of responsibility, this partner represents a node in the respective organizational structure. Based on this assignment, the partner is integrated into the organizational structure of the respective area of responsibility.

The same organization can appear parallel as a node in any area of responsibility, but only once per area of responsibility.

If an organization is used as a node in the Sales organization structure, it is referred to as sales organization. In the same way, an organization results in a purchasing and/or inventory management organization.

The organizational structures reflect both organizational and process-relevant assignments, thus mapping not only the structural organization but also the procedural organization of a company.

Inventory management organization structure

The inventory management organization structure is used for mapping the actual sites for warehouses and production. In so doing, the geographical location of sites can be properly factored in, such that, for example, regions and countries can be mapped in addition to departments and sites. Specific queries and analyses are allowed, accordingly.

Structure

The top level, or root, of an inventory management organization structure is always the corporation. This is followed by any structural levels, such as sites, warehouses, departments, or groups.

The warehouses can accept inventories of various inventory owners and, thus, even different companies, since the respective owner of the items is recorded for the inventory management. In this way, for example, a central purchasing followed by distribution to multiple sites can be mapped.

Inventory management organization structure details

The top organization of the inventory management organization structure is the client. Each site must exhibit a unique path. A path only allows for exactly one site.

Shared data of the relevant business entities always come from clients. Only sites may maintain separate data for the relevant business entities.

Each inventory management organization is to be assigned a company.

Purchasing organization structure

The purchasing organization structure is oriented to the purchasing strategies of the corporation. A wide range of perspectives can be taken into consideration in forming the hierarchy.

Structure

The root is always the corporation. The structure levels following it can be configured as required. A node of this structure can be responsible for one site or for multiple sites of the inventory management organization structure. If no node from the purchasing organization structure is assigned for a purchasing item at a site, the item cannot be purchased for this site. A node of the purchasing organization structure is assigned by default to each purchasing item; the site does not matter. Furthermore, it is essential that each node of the purchasing organization structure is assigned to one company. By contrast, a company can be assigned to as many nodes in a structure as required.

Purchasing organization structure details

The top organization of the purchasing organization structure is the client. Each purchasing item is uniquely assigned to a purchasing organization. Only then, this item can be procured by the purchasing organization.

The information regarding the purchasing organization is transferred to the Data Warehouse for statistics. This enables analyses to be performed as well as, to a large extent, consolidation as required.

Sales organization structure

The sales organization structure can be based on the sales structures of a corporation. As is the case for the purchasing organization structure, a wide range of perspectives are possible for the structure.

Structure

The structure is very similar to that of the purchasing organization structure. The root is the corporation. The structure levels following it can be configured as required. It can be defined which items will be sold for each node of the sales organization structure. Thus, for example, various nodes can sell the same sales item.

The top organization of the sales organization structure is the client. Each sales item is uniquely assigned to a sales organization. Only then, this item can be distributed by the sales organization.

The sales organization information is transferred to the Data Warehouse for statistics. This enables analyses to be performed as well as, to a large extent, consolidation as required.

Financials

The structure in Financials is organized according to the requirements of different jurisdictions in the different countries. One company is required, at a minimum, per country. All country-specific functions of the ERP system are linked to the respective companies. In Financials, a hierarchical structuring of companies is not possible.

Data storage and data use

Using

All organizations can use these data and the content-based authorizations are not applicable for them. Within the scope of multi-site processes, the master data, in particular, is differentiated. Subsequently, the differences are listed that primarily arise when saving or using data. Additionally, the use can be controlled through content-based authorizations.

Master data with organization-based use

Master data with organization-based use is master data with corporation-wide validity, for which the organizations allowed to use such data can be additionally defined. Master data with organization-based use is created, for example, in the Types applications (sales order types, delivery order types, opportunity types, etc.) or in the Availability rules, Sales price listings, and Time models applications.

Saving

The data is saved at client level.

Using

It is possible to define whether content-based authorizations are to be analyzed for organizations.Content-based authorizations can be defined.

In the Organizations application, it can be defined for each organization whether content-based authorizations are to be used for a business entity.

If it has been defined that the content-based authorizations are to be analyzed for an organization, content-based authorizations can be specified in the application related to the business entity. These definitions have an effect on the applications using the respective data (e.g. sales orders). Based on the definitions, it can be controlled which organization may view or edit which data. By assigning a user to an organization in the partner master data, you also define which data a user may view or edit.

Organization-based master data

Which organization may use specific master data from the Financials area can be defined for an organization. In other areas, you can define whether the organization wants to use own master data or the data of a client. Accordingly, only one organization is responsible for editing the master data. This refers to such master data whose identification is extended by organization information.

Payment terms and classifications

Saving

The data is saved at client level or at organization level.

Using

The data can be used either by the client or with regard to the organization. Content-based authorizations cannot be defined.

The category of organization allowed to edit the data is defined for each application. For example, fiscal years may only be edited by companies and sales prices may only be edited by sales organizations. Thus, it is also predetermined which organization category a user must be assigned to in order to be allowed to edit corresponding data.

The Organizations application is used to define which organization may use an organization’s master data or whether an organization will edit the master data by itself. Only when the setting for an organization allows own master data, the organization may also be enabled to edit respective business entities by itself.

Combination of corporation-wide and organization-based master data

Some master data that consists of multiple entities comprises both organization-based master data and data valid throughout the corporation. For example, you find a combination of organization-based and corporation-wide master data in the Items, Partners, and Classifications applications.

Saving

The data is saved at client level or at organization level.

Using

• Organization-based data can only be used by the concerning organization.
• Data that is edited at client level can be used by all organizations having no own data.

Using data in vouchers

In a multi-site environment, vouchers (e.g. sales orders) always refer to an organization. The organization is used to determine which data may be utilized. So, it is determined, for example, which order types or partners and items may be utilized.

Saving

The data is saved at organization level.

Using

The data is used based on the organization. Any content-based authorizations affect the data in vouchers.

In vouchers, different business entities are used. Normally, they must refer to the same organization in order to be utilized.

The table below shows, by way of example, which data is required for a sales order. To that end, the organization selected for the sales order is relevant. For instance, the ordering party used must be a customer of the sales organization for which the sales order is created.

The table below lists the dependencies between partner data for individual task areas (views in the Partners application, such as Base or Employee) and the partner usage in their corresponding roles and organizations.

Internal employees

The following assignments are required for an employee of a corporation, i.e. an internal employee, to act on behalf of one or multiple organizations:

• a user logging on to the system needs to be assigned to a partner who was created as internal employee, e.g. via the User accounts tab in the Base view of the Employees
• the internal employee to whom a user was assigned must have allocated at least one organization for which he/she may act. Organizations are created in the Assigned organizations field of the Base view in the partner master data.

When an employee is assigned to organizations, partner relationships of the Assigned organization category are generated. The relationships are time-dependent and can thus be changed in future versions of the employee master data.

When the organizations permissible for the user are determined, only the organizations directly assigned to the user are considered.

Inter-company billings

Business events between organizations that are assigned to different companies in financials require inter-company billing. All of these inter-company billings are performed automatically, for example:

• sales of an item whose owner is a different company based on the organizational structure
• provision of materials to a vendor for a production whose owner is a different company based on the organizational structure.

Currencies

Examples for organizational barriers that can be overcome with multi-site

A multi-site system offers various possibilities of mapping a transnational corporation’s structure. However, the different tax law between various countries forces an entrepreneur to observe a few rules regarding the structure. This chapter explains, by way of example, some business cases that should be considered while configuring a multi-site system. Besides, always observe the currently valid regulations being subject to constant change.

Example: Overseas branch

A company based in Germany wants to sell items via a field warehouse in Austria. The selling of items from the field warehouse in Austria to a customer based in Austria is referred to as domestic business and requires taxes to be paid in Austria.

Since the company based in Germany must pay corresponding taxes according to German tax law, the items cannot be sold via a field warehouse. To do so, a company within the corporation must exist in Austria, which is registered in Austria according to tax law and thus will incur tax liabilities towards the Austrian State. In that case, the German company may sell items to the Austrian company and thus undertake an export transaction, including all consequences as to importing (import turnover tax, etc.). Afterwards, the items can be sold to customers under Austrian tax law.

Example: Delivery thresholds for imports

Some countries use an upper limit for the value of goods (delivery threshold) with regard to deliveries to private customers, which results in taxes having to be paid abroad only after the upper limit has been exceeded. If, for example, a company from Germany provides their private customers in Belgium with a summarized value of goods of more than EUR 35,000 within one year, this will result in the German company having to pay the corresponding taxes in Belgium in principle. If the German company remains below this delivery threshold within a year, they will pay the taxes in Germany.

In order to be able to pay due taxes in Belgium, the German company must have a separate company in Belgium, which is registered in Belgium according to tax law and thus incurs tax liabilities towards the Belgian State. Only companies based in the respective country can transfer taxes. If the foreign customers were assigned to the German company first, they have to be blocked for the German company, duplicated for the Belgian company, and consequently assigned to the last one after the delivery threshold has been exceeded.

To prevent this effort, it should be checked whether a company is to be mapped in the respective foreign country when configuring the multi-site system. If overseas deliveries are processed frequently, it may be advisable to set up a company in the respective foreign country, organize deliveries of goods between the companies, and settle them internally.

Example: Cross-border consignment

A consignment business is characterized by an item changing into the seller’s inventory only when the seller sells it to the customer.

If a company based in Austria delivers their items within the scope of a consignment business to a company based in Germany, the German company will be responsible for processing the import and thus for transferring the taxes so that no consignment business will be possible this way since the items would directly pass into the inventory of the German company. A consignment business can be accomplished only when the Austrian company sets up a company in Germany, with both companies being subject to the same tax law: The Austrian company delivers to their company in Germany, thus being responsible for import. The German companies can process a consignment business among themselves.

In principle, a consignment business requires two companies. If those companies are based within one country, they will be solely subject to the laws within this country. That makes it easier to comply with the laws and to process the business case. Whether the consignment business is with a supplier or a customer is irrelevant. A cross-border consignment business is also possible, but requires the laws of two countries to be observed and therefore needs to be verified in individual cases as regards the consequences.

Customizing

The Multi-site function is to be activated in the Customizing application. This also implies activating the Content-based authorizations function.

The following settings are relevant for multi-site processes.

Authorizations

In a multi-site environment, the required authorization definitions are at the User and Organization levels. In addition, all nodes can be considered when authorizations are assigned.

Content-based authorizations

Content-based authorizations are available for internal employees as well as for employees of business partners. Content-based authorizations offer the possibility of restricting access to certain data and of releasing functions.